【Text by Observer Net, Zhang Jingjuan】On one hand, the US and South Korea still have differences on key details of a 350 billion USD investment commitment, while on the other hand, China has taken countermeasures. In the view of South Korean President Lee Jae-myung, South Korea is now a country "sandwiched between two grinding stones."

This mid-month, the United States began implementing the final measures of the Section 301 investigation into China's maritime, logistics, and shipbuilding sectors. Hanwha Ocean Co., Ltd. in the US has assisted and supported the US government in conducting the Section 301 investigation and taking measures against China's maritime, logistics, and shipbuilding industries. To safeguard its sovereignty, security, and development interests, China has decided to include five US-related subsidiaries of Hanwha Ocean Co., Ltd. in the countermeasure list, prohibiting organizations and individuals within China from engaging in any transactions, cooperation, or other activities with them.

"This is likely a way for China to exert pressure, implying that such events may continue to occur in the future," said Lee Jae-myung during an interview with Bloomberg on the 24th. However, he emphasized that confronting China is not a good approach, and dialogue is always the preferred choice.

Regarding the South Korean 350 billion USD investment package to the US, Lee Jae-myung stated, "All aspects such as the investment method, amount, timetable, and how to share losses and distribute profits remain controversial. The US will certainly strive to maximize its own interests, but it cannot come at the cost of catastrophic consequences for South Korea."

According to reports, US and South Korean leaders will hold talks during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea on October 29. Before US President Trump left Washington on the 24th to begin a nearly week-long visit to Asia, he told reporters that the US and South Korea are "very close" to finalizing a trade agreement.

The report states that US and South Korean officials have been negotiating to reach an agreement on the 350 billion USD South Korean investment fund to the US, which is a core condition for the US to reduce South Korean tariff rates.

Regarding the progress of the negotiations, Lee Jae-myung called for patience: "The negotiations are still ongoing, there are some differences of opinion, but delay does not necessarily mean failure. Therefore, I hope everyone can be patient."

Lee Jae-myung being interviewed, screenshot from video

Currently, South Korea's main export product, automobiles, face a high tariff of 25%, while Japan's tariff has been reduced to 15%. Lee Jae-myung downplayed the comparability between the two, saying that South Korea could also learn from the negotiation methods of the EU and Trump. "South Korea is a friend and ally of the US, so we believe we can achieve a reasonable result acceptable to all parties, which must be achieved," he said.

Notably, in September this year, US Immigration and Customs Enforcement (ICE) agents arrested 475 workers at a Hyundai Motor factory in Georgia, USA, among whom about 300 were South Koreans. Shortly before, Lee Jae-myung visited the US and promised to increase investments in the US, including the battery manufacturing industry.

Lee Jae-myung told Bloomberg that the two countries are currently advancing the revision of the visa system, and this issue is expected to be resolved "in the near future."

"The incident caused serious trauma to the workers, and I heard some of them do not want to go back," he said. "If measures are not taken to ensure the safety and proper treatment of these workers, the construction of US factories may be significantly delayed."

In terms of defense issues, Lee Jae-myung revealed that South Korea plans to increase defense spending from the current 2.3% of GDP to 3.5%, which is more based on the basic stance of ensuring autonomous defense rather than due to pressure from the US. He also mentioned that the presence of US troops in South Korea is crucial for peace and security on the Korean Peninsula, but the fate of US troops in South Korea is not decided by South Korea.

Against the backdrop of intensified Sino-US competition, how South Korea balances maintaining its alliance with the US while maintaining economic and trade cooperation with China will be a major challenge for the Lee Jae-myung government. Lee Jae-myung previously admitted in an interview that the "crucial" alliance between South Korea and the US makes handling relations with China "somewhat delicate." However, he emphasized that despite differences in ideology and political systems between the two countries, "China cannot be excluded."

Regarding Sino-Korean relations, Foreign Ministry Spokesperson Guo Jia-kun stated on the 24th at a regular press conference that China and South Korea are neighboring countries and partners. China values Sino-Korean relations and maintains the stability and continuity of its policy toward South Korea. China is willing to work with South Korea to uphold the original intention of establishing diplomatic relations, adhere to friendly neighborhood, mutual benefit, and win-win cooperation, and promote the development of the strategic partnership between China and South Korea.

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Original article: https://www.toutiao.com/article/7565713407056347683/

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